OREANDA-NEWS. August 14, 2012. The license of the Royal Bank OJSC was reportedly revoked at the order of the Central Bank of the Republic of Azerbaijan (CBA) Management Board, reported the press-centre of CBA.

Moreover, a temporary administrator was appointed to the Royal Bank OJSC at the order of the CBA Management Board from July 13, 2012. The Central Bank appealed to the Baku City Administrative Economic Court N#1 on July 16, 2012 in order to start bankruptcy procedures on the bank due to its failure to meet liabilities before creditors. Under the existing legislation, the moratorium on the bank’s liabilities took effect from that time on. A liquidator was appointed to the bank at the order of the Baku City Administrative Court N#1 dated July 25, 2012. Currently the liquidator is operating in the bank.

The order in question was released to mass media. Because the Royal Bank OJSC is the member of the Deposits Insurance Fund, compensations need to be paid on bank’s protected deposits under the legislation. The law determines the criteria on protected deposits. Compensations are paid to 100% of protected deposits, provided that the amount does not exceed 30 thousand manat.

These terms and conditions are included to deposit agreements signed with depositors. As media outlets are informed, the Deposits Insurance Fund launched compensation payments on protected deposits of the Royal Bank OJSC under the legislation via assigned banks (Mugan Bank OJSC, AGBank OJSC, Bank Respublika OJSC).

Remaining deposits, as well as all other creditor claims against the bank shall be paid from collected assets of the bank. Under the Law on Banks, claims against the bank shall be registered in writing during 60 calendar days from the first release date of court order on bank’s bankruptcy and creditors’ claims shall be met in the order of priority. Repayment of depostis of the population shall be prioritized.